The article is more about the author's self-control problems than about Costco.
My main use of Costco has become non-prescription pharmacy products. CVS and Walgreens have marked up basic items too much. I don't buy much else there, except tires every few years.
Unfortunately, they're into the overpriced mattress racket. Look on Alibaba to see what mattresses really cost.
The most significant value I get from Costco is that the quality is consistently high and the options are well curated. I like not having to go through 100s of brands of basic staples like yogurt, toilet paper, milk, etc...
Personally I've found that "well curated" sometimes becomes a double-edged sword in Costco's case. Mainstream brands can be expected to be available perennially; however, smaller/niche items and brands will often get cycled out or replaced by something else which may or may not be comparable.
Many times I've found products at Costco that I enjoy, only for them to suddenly stop carrying them a week or a month later.
A typical grocery store will carry on the order of 40,000 unique products. Costco is hard limited to a max of 3,700 unique products. If a store wants to bring a new product in, something must be rotated out. This also means that if a product wants to stay in Costco, it has to sell a certain minimum number of pallets, per month, to be worth it.
Costco is great if you are poor and live on a strict budget, but as soon as you have disposable income, it sucks. You walk in to buy something under $10, always walk out with cart full ($300 - $600), because lots of products seem like incredible deals and nice to have.
I am considering ordering everything for delivery, delivery costs more, but the tax of in store shopping is a lot more.
Not mutually exclusive just one situation the barrier is not having the money in the first place and the other the barrier is exercising the self control over the thought "I have the money, I can get this now". It's a common hurdle for those who've grown their income and a pretty decent problem to have (as far as problems go).
Apparently it's why the entire American economy cratered during the pandemic and so-called lockdown, if well-off people aren't allowed to waste massive amounts of money daily it destroys America.
The whole post is some ridiculous first-world tears, just wow.
I've never used Costco as the one place I go for everything. I have a list of stuff I buy there and because its in large quantities, it lasts for several weeks. I have other stuff like fruit and deli meat I get at the local grocery store and some things I get at Aldi because its cheaper than both my local place AND Costco.
You just have to know where to get the best prices for the stuff you regularly buy. Once you do that, you realize there isn't one store with all the best deals, you have to mix-n-match to really save money.
I certainly don't find this. I swing by Costco to buy Coca Cola and imported British Cheddar for ~1/10th the price that any of the supermarkets have it, and basically never leave with anything else. Just those two things make it worth the membership.
Everything that we buy at Costco, i.e., organic vegetables and fruits, bread, cheese, nuts and dried fruit, pasta and pasta sauce, coffee beans, dog food, vitamins, etc. (notably not meat as the quantities are too large for us), is considerably cheaper at Costco than local grocery stores for the same item or of the same level (i.e., organics). (You can get really good deals on wine too if you don't care about variety.) Certain other things, milk, eggs, meat, we buy only local as much as we can. Yes, the selection is limited but it works great for us because we are 1) focused on a limited selection of higher quality raw foods; 2) avoid processed/pre-made foods as much as possible; 3) buy larger quantities less frequently.
Not to mention the gas. With a Costco credit card, total savings are substantial. It's always at least 50 cents cheaper per gallon than other gas stations, and if you know when to go there isn't a huge line.
Edit: Besides meat, we also don't buy paper products at Costco, as a few years ago we switched to bamboo-based toilet paper and paper tools (reelpaper.com though there are others). It's definitely more expensive but it's just the choice we made. Same thing for switching from plastic to compostable garbage bags (not available at Costco), and absolutely no bottled water or soda cans (another Costco favorite for many) - we use DrinkMate for seltzer (besides, soda, i.e., Coke etc., is strictly verboten in the house along with sugary snacks--the kids gripe but are healthy, and that's another reason we buy lots of fruit).
My main beef with Costco is exiting the store, where they insist on checking your receipt as a loss-prevention measure. The presumption of guilt irks me way more than it probably should.
Costco has 95% lower shrinkage compared to retail average; hard to say how much is due to the receipt checks though; some of it probably comes from lower employee turnover as well since a non-trivial amount of retail shrinkage is from employees.
Here's a Reddit posting from a Costco worker from 5 years ago:
"So, as someone who's done this job, I gotta be completely honest to those of you bagging on us and calling us liars.
If a receipt shows under 20 items, we count. It's a very quick count to 20. Most people who work at the exit are actually counting your cart before you even hand the receipt over. So by the time the receipt is in your hands...they already know there's 15 items in your buggy. They look at the receipt for a split second, see the 15 at the bottom, mark it and hand it back. Easy.
Now, for carts with over 20 items...even packed with 100 items. The main things we check for are stuff on the bottom. Cases of water, TP, pop cases, etc. All those extra things that maybe a cashier misses. We're not gonna catch EVERYTHING and that's fine, we also don't want to keep you there all day long. Ideally the people at the register are doing their jobs right, sadly that's not always the case. 99 percent of the time, it's not due to theft. If you were genuinely trying to steal something, you wouldn't just leave it sitting in your cart. We also check for big items, bluetooth speakers, electronic items, etc. Also gift cards. Basically anything that requires a second check to make sure either the cashier got it, or the member has to pick it up."
I’ve heard that explanation a few times but I find it very hard to believe that's the primary reason. I can't imagine Costco would devote two workers full-time to that -- it’s simply against their lean philosophy.
That's the second reason I find the practice so irksome: on top of requiring customers to wait in line to prove their innocence, they pretend that the practice is for their customers' benefit. And people believe them!? Maddening.
Buying clothes at Costco is amazing - you just get a few of different sizes, try them on at home then return the ones you don't want later.
Costco's return policy is one of the best things about them.
The return policy is one of the reasons we bought our new all-in-one washer/dryer combo there. If this whole new-fangled "all-in-one" thing isn't all that, back it goes.
(Turns out it is all that: runs on 120VAC, doesn't need a vent for the dryer; awesome. Downside: you have a single pipeline, so if you're washing then you can't be drying at the same time. Oh, and get the GE instead of LG: filters are easier to get to, among other advantages.)
I buy things from there too because of the return policy. I went through a few car chargers (EVCE) from Amazon, they all went bad. After that experience, I found one from Costco with the assumption I could use the return policy if it inevitably went bad. Actually, it's still working, haven't had to return it yet. In fact, thinking about it, maybe Costco screens products for quality BECAUSE of the return policy.
Also, if you're travelling to Hawaii or Iceland, it's a cheap place to eat for the family.
I prefer the set of trade-offs in shopping at Costco vs. a lot of other places. I also prefer the trade-off of getting stuff quickly without leaving home when buying from Amazon. I can see why some people would prefer other trade-offs, that doesn't make Costco worst or better, just a set of trade-offs I can live with.
We have a costco membership, but use it mainly for the significantly cheaper gas. The cash back on the rewards credit card ends up mostly paying for the membership, which makes it a net win if you live or commute close to a Costco.
People rave about the low prices, but I can only assume that is some kind of collective delusion. Where I live, the grocery stores across the street always have better prices on meat and dairy, usually fruit and veg too. For the non-food things they sell, you can usually get the same exact thing on Amazon at the same price, without having to drive anywhere or wait in line for the receipt-checking security theatre.
I'm an avid comparison shopper and this this has been my experience anyway. YMMV.
We have a costco membership, but use it mainly for the significantly cheaper gas.
We have a Costco membership, and I never use it to buy gas even when I'm already at Costco. There's always a line, and at a $0.05/gallon savings on a 12 gallon tank (assuming that I sputtered my way to the pump as the tank runs dry), the most I'll save is $0.60. My time is worth more than that, I'll just swing by Chevron on the way home where the only time consideration is how fast the pump can shove gasoline into the tank.
(Okay, maybe you save $0.10/gallon where you live: it's still only $1.20 savings in our car.)
Gas obsession is fascinating to me since it isn't even the main expense of owning a vehicle in estimation.
One of the execs at my company that has since retired once spent 2 hours waiting to fill up his BMW when the local gas station had a free $20 of gas promo. Always boggled my mind how that guy thought it was worth his time to do that, but I guess it deprived some poor person he edged out of $20 so it was worth it in the end, lol.
American Gas price nonsense is a cultural trauma from the energy problems caused by OPEC sanctions in the 70s.
Basically the BS of American exceptionalism ran up against the reality of us importing 80% of our energy needs from Autocratic middle eastern countries. We got cut off from that and it gave us a national crisis. We had two options going forward:
Either we focus on independent energy solutions, like nuclear and renewables. It would take more effort but would clearly be a smart and forward thinking investment, making us into an energy independent nation that could afford to make hard choices in geopolitics because of that independence, and could be a center for energy tech moving forward. It would probably be difficult for a decade but we basically would have avoided the worst of climate change, and likely be on a stable climate path already.
Or we could just turn ourselves into vassals of the oil states, throwing away any morals to the quick and cheap solution that would give us a rich 80s and immediately put us on a path to more future problems and burning cash in the desert trying to keep them pumping that black gold. We would sacrifice our future for slightly more success right here and now, and damn the consequences 50 years down the road, we will all be dead by then anyway.
Guess which option we picked? What's funny is that we eventually got the energy independence anyway, thanks to fracking and conservation, but we already wasted trillions in the sandbox, but we STILL need to dedicate enormous national effort keeping the sandbox just stable enough to pump oil because even though we export a significant quantity of our oil, if the price goes up a few cents that apparently ruins the economics of owning a Bro-Dozer so much that people who haven't gotten a raise in 50 years get really upset that """the economy""" is doing poorly.
Nevermind that the price of gas seems to suspiciously go up in November, regardless of the actual production figures, but only when there is a democrat in the white house.
Right now, in CA, Costco is $0.60 cheaper than surrounding stations. I have a 25 gallon tank. This is worth $12.50 for me to fill up at Costco. I've timed the line, the longest wait I've had is 5 minutes. It's an obvious win.
Right now, in CA, Costco is $0.60 cheaper than surrounding stations.
Per gallon? Wow, I grant that I haven't comparison shopped in years, but you're getting more of a break than we did in WA when I was looking. I'm serious when I say that there was about a nickel's difference. Perhaps I should take another look at the price signs next time I'm there. Because, yeah, I'd sit in line for $6 (on a ten gallon fillup).
We usually save $5-8 per fill-up over the most convenient gas stations and are usually nearby when there isn't a line. Plus, it's well maintained and doesn't play ads on the islands and the people watching is entertaining.
I think it’s an intersection of quality and price for Costco.
In my experience, you can certainly get things for much cheaper elsewhere in terms of price, but not at the same quality.
Costco definitely pays off if you have a family of 4+. I think the benefits you get from buying in bulk are really limited if you’re a single person/a couple.
It seems to me that Costco sells a lot of "B Stock" products. Things from manufacturers that didn't pass their Q/A or brand standards and get resorted and labeled as Kirkland products. Which I always assumed is why they have such a generous returns policy.
I have yet to find sensitive toothpaste sold at comparable prices anywhere else. Buying one of those packages saves enough to pay for the membership by itself.
> People rave about the low prices, but I can only assume that is some kind of collective delusion. Where I live, the grocery stores across the street always have better prices on meat and dairy, usually fruit and veg too.
You can get better prices at the grocery, but the quality is generally lower and the price isn't always lower. For example, chicken breasts are $3/lb at costco, individually packaged for freezing and high quality. Sure, I can often get breasts at the market in the bulk pack for $2/lb or less, but they're more water-logged, not ready-packed for the freezer, and don't taste as good. I happily pay somewhat more for the convenience and quality at a still low price. To get that level of quality at the grocery, I'm up at $6/lb for organic, name brand chicken. That's Costco's approach, especially with their in-house Kirkland Signature products: very high quality, and reasonable, sustainable prices.
> For the non-food things they sell, you can usually get the same exact thing on Amazon at the same price, without having to drive anywhere or wait in line for the receipt-checking security theatre.
Sometimes this is true, and sometimes you get the Amazon item and it's actually hidden lower-quality; the stitching on clothing is worse, the colors don't pop as much, etc. For fungible products that have a single SKU (books, electronics, kitchenware, most dry goods), Amazon is great, but when there's an opportunity for hidden quality drops and cost-downs, Costco has a buyer on-staff ensuring that the manufacturer doesn't cut corners. Amazon is rife with corner-cutting.
Yeah, I had the same experience in my area. It's so strange to see so many people (online, and locally) strongly assert that Costco has the cheapest price on many goods. It's a strangely pervasive notion. We thought that we must be missing something!
Sure, some specific items are always cheap -- like the rotisserie chicken. But outside of those few things, you really have to look for actual savings, and that's true even of baby products which so many in our area seem to get at Costco. In many cases, we would be buying something in bulk for more money than at Winco or Kroger.
Shopping there is also rather disorienting... many times an item we bought one week would be gone the next. Or items would unpredictably shift locations.
As some commenters have identified, there may be specific items you want that are in fact cheaper at Costco. And I only have personal experience from my area, which is not a big city and has cheaper local grocery prices than a more urban area. My main point is: if you've been shopping at Costco assuming you are getting a good deal, you might want to double check against other stores!
The savings on grocery can also be a delusion if you don't eat it before it goes bad. I would rather go to a local grocery store and buy fresh fruit every time I need it, than buy a box of it at Costco and feel obliged to continually eat the same foods lest I throw it away.
Sometimes the complete lack of selection at Costco is nice - no more rummaging through faceless brand names on Amazon selling you the same generic junk, just shut your brain off and buy the one option at Costco.
I only go to Costco an hour before their closing time on the weekdays just to avoid the crowds, it's worked out so far but obviously that's not practical for everyone.
YMMV is just a reiteration of "collective delusion" rather than goodwill, I assume. :)
We're fortunate to have a debit-card-only store that usually beats Costco, Aldi's and Walmart and has the most variety. Not common for people to have that. Costco is best for some packaged foods and paper products and sells some distinctive items.
I like the selection at Costco more than Sam's Club, but the shopping experience isn't nearly as good. I love being able to walk into Sam's and checkout without ever getting in line. Of course, Walmart has always been ahead of the curve in terms of technology.
Well, there's "Walmart Pay", a QR-code based payment system. It seems pretty clear they're refusing to adopt the normal contactless payments, not that they are incapable.
My headcanon is that Walmart pay 1) avoids or circumnavigates traditional credit-card payment processing fees and 2) is accessible for lower income and unbanked/under banked customers.
Eh. I had a costco membership for one year in order to get cheaper tires. I shopped there for food once. It's fine if you only eat shelf-stable heavily processed food. I prefer fresh produce. It really puts you in the mindset of high consumption. If I had four kids I would probably shop there more often, but since I don't I prefer the grocery co-op down the street that stocks produce from local farms and has bulk bins for almost everything so I can buy small quantities of really fresh food. I used to live in the north Texas food desert and I can imagine it would be a much more attractive retailer there because fresh, local food doesn't really exist in north Texas.
My main memory of Costco is seeing tons of products that were presented as bulk, but were actually regular. Like a bottle of 200 Tylenol (normal size that every small pharmacy carries) but at Costco it was in a quart-size bottle and each individual bottle was placed in a giant cardboard tray and shrink-wrapped to make it physically take up as much space as possible. And it was selling at an above-average price.
Costco is the American version of communism, from the $1.50 hotdogs to the high employee satisfaction, to the drab industrial-scale warehouses, to the two-or-three items in each category available.
Costco gets at a core American value, but it's not communism. It's the DIY, bootstraps attitude that Americans love. You get a deal but you basically shop from a warehouse that was built for forklifts, not customers. The displays are just pallets with a price board set on top.
Costco does an amazing job of delivering a product (quality food and merchandise) without any of the additional frills that would lead to markups, like nice ambiance or displays. That is a huge deal for millions of Americans who are happy to shop on bare concrete floors if it means saving money.
You might do well to, like, read a Wikipedia page on communism or something. OTOH, Costco does treat its employees well, so maybe it is a worker's paradise? (But I'm pretty sure where the comparison stops. EDIT: sibling points out that Costco actually has shelves with stuff on them.)
My main use of Costco has become non-prescription pharmacy products. CVS and Walgreens have marked up basic items too much. I don't buy much else there, except tires every few years.
Unfortunately, they're into the overpriced mattress racket. Look on Alibaba to see what mattresses really cost.